To OTC Journal Members:
 

Don't Forget to BLOG

NWKI had a huge volume day on Monday, and BLOG comments were available about 1/2 hour into the trading day. I noticed that it took about another 45 minutes for that day's BLOG entry to show up on Yahoo!, so you might want to go straight to the home page if you are looking for feedback immediately.

If you want to start understanding how to use the automatic RSS feeds, we have made the first step simple. For those with a Yahoo! Home Page simply click on the MY Yahoo! links on the right hand menu bar at www.OTCJournal.com , and you can add both the OTC Blog and the OTC Journal to your Yahoo! home page if you have one. If you don't, you should get one. The content flexibility is amazing. You will then be automatically be notified about new editions and new BLOG entries.
 

NetWork Installation (OTC BB: NWKI); Renewed Enthusiasm Justified

This is the second edition in a row on NWKI because the company is starting to get some real traction. Since I have already committed to an interview with Chairman Mike Novielli in the weekend edition, this whole week will end up being devoted to the company. I am still interested in any questions you might have for Mr. Novielli- please email them to editor@otcjournal.com. 

NWKI had a huge volume day on Monday, notching the second highest volume in the stock's history and the highest volume day since August 4, 2003. There wasn't much price improvement to go along with the huge volume surge, but days like Monday go a long ways towards positioning the stock for its next thrust to the North. NWKI has already appreciated 16% in January, so it is entitled to trade sideways or down a little enroute to higher levels.

The stock has slipped back $.24 in Tuesday's action. The pullback is probably more of a buying opportunity than a sell signal. The longer term chart below shows that the uptrend from which began in August remains intact.

The renewed enthusiasm for NWKI is not based solely on Friday's acquisition announcement. Based on today's post close announcement, NWKI should deliver it's best growth year to date. 

Current management took this company over in early 2003. NWKI came from humble beginnings. The company only achieved $800K in sales in '02. In '03 sales improved to $1.23 million (up 84%), and '04 looks like an improvement of 103% if the 4th qtr mirrors the first three (about $2.5 million for the year.) The market loves double digit growth, and so do I.

Based on today's post close announcement, rapid growth is fueling the renewed enthusiasm for NWKI. According to a press release which came out after the closing bell, NWKI already has a $1.5 million backlog of projects for 2005. 

Just three weeks into the new year, and NWKI has already booked 60% of all of 2004's business. This helps explain the recent significant increase in volume. Extrapolating from today's news (which the market loves to do), it would appear NWKI's growth rate will accelerate rapidly in 2005- perhaps $8 to $10 million in revenues could be possible which would be 4 to 5 times 2004's performance.

Today's minor pullback is of no consequence in the longer term picture. As long as the stock trades above the uptrend line, the trend remains intact. Of far greater interest are the blue resistance lines above. This is where the stock has reversed course in the past.

I still believe the stock is likely to try for the $2.26 level it attained back in October. This assumes the company is on a roll and is going to continue to deliver new contracts. If the $2.26 level can be breached, $2.75 comes into play as a possibility.

Monday's action went a long ways towards positioning this stock for higher levels. It was a high volume cleansing which gave sellers an opportunity to get out. Today's pullback was probably fueled by traders who were looking for some short term action, and have already thrown in the towel.

As stated above, as long as we stay above the green trend line, the uptrend remains intact. The stock would have to drop to about $1.85 to hit the line. Therefore, I believe this pullback is an opportunity, especially now that we have some indication the company could have a remarkable year.
 

Look for NWKI to turn back up. Here is the text of today's news release for your review:
 
 

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